This essay discusses the role of fiscal policy in stabilizing a nation’s economy, focusing on overcoming recessions and controlling inflation through discretionary and non-discretionary measures. It explains how governments use increased expenditure and tax reductions to stimulate aggregate demand during recessions, and conversely, reduce expenditure and raise taxes to curb inflation. The essay also examines the United Kingdom's fiscal policy response to the 2008-2009 recession, including tax cuts and investment schemes, and assesses the limited effectiveness of these measures due to high debt levels among firms, consumers, and banks, which led to increased saving rather than investment. The paper concludes that while the UK adopted fiscal policy, the specific measures were not entirely successful in facilitating a full recovery.